Bernstein, the giant name of the finance world, announced that he predicts a huge 87% upside potential for Robinhood shares, despite the sharp decline in cryptocurrency revenues. Sharing its fourth quarter data on Tuesday, the company experienced a shakeup in the stock market due to the decline in crypto transaction volumes, despite breaking a record in total revenue. The team, led by analyst Gautam Chhugani, described this pullback as a temporary jolt and reminded investors of its ambitious price target of $160.
Loss in Crypto Revenues Offset by Record
Robinhood’s fourth-quarter financial statement clearly laid out the effects of the recession in the digital asset market. Cryptocurrency transaction revenues decreased by 38% compared to the same period last year, falling to $221 million. The main source of this sharp decline was recorded as a 52% decrease in the transaction volumes of individual investors, who are the main user base of the application. After the market data was announced, the shares lost 9% in after-hours trading, falling to $78.80.
Despite this retreat, Bernstein analysts point out that the company’s overall performance is quite resilient. Total net income rose 27% to a historic high of $1.28 billion, driven by a surge in options and stock trading. The institution is more than just a trading platform for Robinhood; It emphasizes that it has turned into a broad-based financial center with the growth in the number of funded accounts, Gold subscriptions and retirement assets. In particular, pension assets reaching 26.5 billion dollars prove that the company is in a strategic change.
Prediction Markets and New Technological Breakthroughs
Prediction markets, which take the lion’s share of future projections, managed to exceed expectations by accounting for 8% of total revenue in the fourth quarter. While the volume of 8.5 billion contracts executed through the platform exceeded Bernstein’s predictions, the 27 billion dollar volume targeted for 2026 has already begun to be approached. Analysts state that the “Rothera” project, which will be implemented in partnership with Susquehanna, will take Robinhood to a much more dominant position in the information and capital markets ecosystem.
On the technology side, the “Robinhood Chain” testnet launch announced on Tuesday reinforces the company’s claim in the blockchain world. This Ethereum Layer 2 solution, built on Arbitrum, has entered the testing phase in new areas such as asset tokenization and family investment. While Bernstein defines the stock’s levels between 60 and 75 dollars as an accumulation opportunity, he argues that the target of 160 dollars is achievable with the strengthening of the technological infrastructure.
